Insurance & LiensQuestion 469 of 690
Which type of insurance is specifically designed to cover a structure and its materials against fire, theft, and weather damage WHILE it is still under construction?
a.Commercial general liability insurance
b.Builder's risk insurance
c.Commercial auto insurance
d.Errors and omissions insurance
Explanation
Builder's risk insurance (also called course-of-construction insurance) protects the building project and its materials from physical loss such as fire, theft, vandalism, and certain weather events during construction.
Practice all 690 questions free — no signup required.
Related questions on this topic
- A general contractor hires an unlicensed "subcontractor" who brings their own crew to the job site. If one of that crew is injured, who is most likely treated as the employer for workers' compensation purposes?
- A contractor's workers' compensation policy is cancelled and the contractor has not filed an exemption certificate. What is the consequence for the CSLB license?
- A property owner is injured when a wall built by the contractor's crew collapses on her. Which of the contractor's policies is designed to respond to this third-party bodily injury claim?
- Which statement best describes the key difference between an insurance policy and a surety bond?
- A general contractor requires each subcontractor to provide proof that they currently carry liability and workers' compensation insurance. The document the subcontractor's insurer issues to verify this coverage is called a:
- A project owner asks to be named an "additional insured" on the general contractor's liability policy. What does this accomplish for the owner?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California CSLB Contractor License Law & Business Exam · How we review